Business Essentials 2.02 D-E (23)

Jeremy has $15,000 to spend on a new car. He found a car that cost $14,500, but he did not think the car was worth more than $12,000. The dealer told Jeremy that he has not been able to sell this model because other customers have expressed the same opinion as Jeremy. Does demand for this car exist?

• Yes, because consumers like the car but don’t buy it.

• Yes, because consumers think the car is worth $12,000.

• No, because consumers do not have the buying power to purchase this car.

• No, because consumers are not willing to pay the price

The quantity of a good or service that producers are able and willing to offer for sale at a specified price in a given period of time is

• quantity demanded

• quantity sold

• demand

• supply

When the price of Bluetooth speakers increases, the quantity of Bluetooth speakers offered for sale will increase. This is an example of the law of

• supply

• cost of production

• demand

• standardization

Your business is selling more and more large-screen televisions each month. Applying the law of supply and demand, what do you expect to happen to the price and supply of these televisions over the next few months?

• The price will decrease, and supply will increase.

• The price will decrease, and supply will decrease.

• The price will increase, and supply will decrease.

• The price will increase, and supply will increase.

A local neighborhood has many houses for sale at a low price, but demand for the houses is low. What kind of market most likely exists in the neighborhood?

• Seller's

• Buyer's

• Inelastic

• Discretionary

Which of the following is characteristic of a seller’s market:

• small demand

• high prices

• low profits

• large supply

Orlando changes the price of one of his products, and this price change leads to a major change in the number of people who purchase the product. This means that demand for Orlando’s product is

• constant

• inelastic

• competitiive

• elastic

Demand for a good is more likely to be elastic when the good is

• imported

• a luxury

• a necessity

• inexpensive

Which of the following describes inelastic demand:

• limited to luxury goods

• not affected by price change

• fluctuating

• variable

Even though gasoline prices increased 15 cents per gallon as the result of the new gas tax, Alice continued to buy gas so that she could make her 20-mile drive to work. This is an example of what type of demand?

• discretionary

• elastic

• inelastic

• complementary